An audit goes faster and costs less when the books arrive reconciled and every number can be traced to a document. An ERP helps because each entry links back to the order, invoice or payment that created it.
Have these ready
- Bank reconciliations for every account at year end
- Debtors and creditors ageing that agree with the ledger
- Stock count sheets and the valuation report
- Fixed asset register with additions, disposals and depreciation
- Accruals and prepayments with workings
- Tax reconciliations: output tax, input tax and withholding
Records auditors test
- A sample of sales traced from order to invoice to payment
- A sample of purchases traced from request to order to receipt to payment
- Journals, especially manual ones, with their approval
- Changes to master data such as supplier bank details
How the system helps
- Attach supporting documents to each transaction
- Lock closed periods so nobody posts into them
- Keep an audit trail of who changed what, and when
- Give the auditor a read-only login instead of exporting files